CTC #18 - New climate tech jobs, a proposed emissions cap for oil & gas production, and Alberta's own hyperloop

Hey there,

Welcome to another issue! It’s been a busy couple of weeks on the policy front, with major steps forward in the U.S. and some promising progress here at home. I’m also introducing a new section in this issue where I’ll be sharing some of the most interesting jobs open in Canadian climate tech. Check it out at the bottom of this issue and let me know what you think!

Policy: Emissions cap & Inflation Reduction Act

The federal government is moving forward with an emissions cap for the oil and gas sector. Minister Guilbeault kicked off another round of consultations by publishing a discussion paper that proposes two options: 

• A cap and trade system through the Environmental Protection Act

• Carbon pricing through the existing pricing framework for heavy emitters 

The emissions cap is a key part of the government’s Emissions Reduction Plan which includes a target of 31% reduction in oil and gas emissions from 2005 levels by 2030. Emissions from oil and gas production are Canada’s biggest source GHG emissions 27%, and the number one source of methane emissions.

Canada has been trending away from our goals, however, making stronger action a logical next step. Since 2005, emissions for the industry have grown by 5% while production grew by 26%. While this is a significant reduction in emissions intensity, it’s still an increase in GHGs going into the atmosphere. Oil and gas industry groups have said they’re being singled out, yet other comparable sectors have reduced their emissions. Emissions for heavy industry, for example, declined by 18% in the same time period. 

What it likely means for the sector:

• Increased investment in carbon capture, utilization and storage to reduce emissions intensity from production

• Investments in methane leak detection and repair

• Exploration of other, non-emitting revenue streams (for example, green hydrogen)

What it’s unlikely to touch: 

• Scope 3 emissions, i.e. the emissions from the eventual use of the oil that is produced

• An outright effort to scale back production. The paper frames the emissions cap as a necessity to keep the industry in business

The paper in its current form also keep offsets on the table, conceding they may be a “time-limited” tool for companies to comply with the regulations. There’s a risk that this leads to a “pay-to-emit” scenario, and more investments in low-cost, low-value offsets.

The feds have also started consultations for two other main planks in their climate platform:  

• Net-zero grid - The “Frame for the Clean Electricity Regulations” aims to move Canada’s electricity generation to renewables while providing regulatory certainty. 

• Plastics - The next phase in addressing plastic pollution is developing rules for recyclability and compostability labelling and establishing a registry of plastics producers. Example: no more using the recycling emoji unless 80% of Canadians have access to a recycling system that accepts and has an end market for the product.

While these consultations chug forward, it's worth noting the landmark Inflation Reduction Act that’s moving forward in the States. Dr. Leah Stokes outlined some of the major wins included in the bill in this thread. If the bill is successful, the U.S. could see emissions reductions up to 44%, just shy of their 2030 target of 50%.

The bill includes some good news for Canada’s EV ecosystem, as Canadian-made EVs will be eligible for purchase incentives. Previously, incentives would only apply to American and union-made vehicles. This change in direction is a win for Canada’s EV sector and integrated production between the countries. 

Funding 

BrainBox AI (Montreal, QC) finalized its Series A round with a total of $38.6M raised. The final round adds $7.7M from Export Development Canada (EDC) to its initial raise and will be used to expand globally. BrainBox provides HVAC solutions that use artificial intelligence to monitor, predict and improve the efficiency of heating and cooling in buildings. 

Aurora Hydrogen (Edmonton, AB) raised $12.8M in Series A funding that will enable them to build and operate a demonstration plant. Aurora uses microwave pyrolysis to produce hydrogen, requiring 80% less energy than electrolysis and no water inputs. 

7 Generation Capital (Vancouver, BC) secured $3.2M in debt financing from the Vancity Community Investment Bank to purchase EV trucks and fast chargers. 7Gen provides end-to-end services to help fleet operators electrify their medium and heavy trucks. The latest funding will see 7Gen lease the trucks to sustainable last-mile delivery company GoBolt.

Nexii Building Solutions (Vancouver, BC) will acquire Solar Earth Technologies, a manufacturer of hardened solar panels that can be incorporated into infrastructure. The proposed acquisition would enable Nexii to integrate solar into future projects.

Hydrofuel Canada (Mississauga, ON), a provider of green ammonia and hydrogen, acquired Nigeria-based Lumos Laboratories. Lumos’ technology converts human and animal waste into new, valuable products including hydrogen, ammonia, fertilizer and more. The acquisition will see Hydrofuel fund the commercialization of Lumos’ technology.

Avatar Innovations (Calgary, AB) received $500k for its carbontech accelerator program from the Opportunity Calgary Investment Fund. One of the objectives of the funding is to see 12 new startups created in Calgary.

Milestones & Growth

Transpod unveiled their new FluxJet vehicle, a new type of transportation that complements rail and air travel. Transpod’s new vehicle would be 3x as fast as high speed rail.

General Fusion was awarded funding from the US Department of Energy to work with two US national labs to advance its fusion energy technology. Fusion represents a massive opportunity for abundant and emission-free energy. 

ARC Clean Energy Canada also announced a partnership with Canada’s national nuclear laboratory, Canadian Nuclear Laboratories, to advance the development and manufacturing of fuel for ARC’s small modular reactor technology. The partnership gives ARC access to CNL’s extensive expertise and lab infrastructure.

Hypercharge Networks is partnering with smart charging startup AXSO. Hypercharge provides EV charging solutions to fleets and will leverage AXSO’s technology to manage the load from charging more effectively as adoption increases. 

Squamish, BC’s Lyric Cycles unveiled their new e-bike / motorcycle hybrid bike, Graffiti. The bike includes a 2,500 watt motor, top speeds of 61 km/h and a range up to 160 km. 

Eco Guardian, a packaging company based in Newmarket, ON, won the Sobeys Plastic Waste Challenge. The competition sought new packaging solutions for in-house wrapped meat and seafood that would be both sustainably and commercially viable. 

Early Research

Two super interesting research papers came out of Canadian universities recently exploring different new avenues for carbon capture:

Researchers at University of Toronto have found that a single rail car equipped with direct air capture (DAC) technology could remove 3,000 tons of CO2 annually, all while being powered by the energy created by braking. Researchers worked with US startup CO2Rail, and estimated that with 400k rail cars in service almost 3 gigatons of CO2 could be removed by 2050.

Meanwhile, researchers at University of Saskatchewan and Simon Fraser University are investigating the potential for bacteria to consume CO2, another unique form of carbon capture. The cyanobacteria studied use carbon to create essential nutrients, hinting at the potential to create value from wasted CO2 emissions.

In the US, researchers at Stanford have found that the transition to renewables could pay for itself in as little as six years. The total transition cost was estimated at $62 trillion, but with $11 trillion in annual energy cost savings. Not to mention 28 million net new jobs created and massive savings from better health.

News

Vancouver City Council voted to help fund a class action lawsuit against some of the world’s largest oil companies. The “Sue Big Oil” initiative is being led by West Coast Environmental Law, and aims to hold oil companies accountable for their local climate impacts.

Federal, provincial and territorial governments signed the Sustainable Canadian Agriculture Partnership, which includes 30% reductions in emissions from nitrogen fertilizers and funding for emissions reduction efforts.

PM Trudeau announced an additional $2B over nine years for the Federal Oceans Protection Plan. The program focuses on responding to oil spills and other threats to marine ecosystems, marine safety, Indigenous partnerships, and scientific research.

A group of Ontario colleges received $3M to establish the Canadian Bio-Cleantech Applied Research Network. The network will focus on helping small and medium start-ups bring bio-based climate tech solutions to market. 

On the west coast, Simon Fraser University received $16.5M to launch a new ag-tech innovation centre, the B.C. Centre for Agritech Innovation.

Jobs

This is a new section I’ll be testing out over the next few issues, sharing some hand-picked roles from interesting companies across a variety of disciplines.

I’d love to know if you find this section useful and what types of postings you’d find most valuable. Leave a note in the comments!

Director of Product / Design at Intelligent City - Vancouver, BC

VP Business Development at e-Zinc - Toronto, ON

Director, Total Rewards at Li-Cycle - Toronto, ON

Director of Data Analytics & Technical Services at RideCo - Waterloo, ON

Senior Product Designer at Klir - Remote in Canada

Community Success Manager at Damon Motors - Vancouver, BC

Lead Software Engineer at Spare - Toronto, ON or Remote in Canada

Growth Marketing Manager at mysa - Remote in Canada

Product Designer at Peak Power - St. John’s or Remote in Canada

As always, thanks for reading and if you’re enjoying the newsletter, consider sharing with a friend!

Justin